Cryptocurrency Wallets

Cryptocurrency wallets

What are crypto wallets? Contrary to popular belief, crypto wallets do not “store your coins” per se. Crypto wallets actually stores your private key, which not only gives you access to spend, but also to view your coins.

Crypto wallets are extremely important because if there is a security flaw in your wallet, that could mean that your private keys would be exposed and your cryptos are vulnerable to be stolen.

Depending on your level of paranoia, personal security risks and vulnerability to be targeted, we have some recommendations.

1) Exchange wallets

These are wallets that the exchange manages for you, which means that the exchange holds your private key and is responsible for executing your instructions and for the key’s safety and security. I strongly do not recommend keeping any substantial amount of funds on exchange wallets if you have better wallet alternatives.

x no access to private keysx reliance on third party to execute instructions+ less stress as the responsibility of security is outsourced to the exchange

These are wallets that you would install on your device and will allow you to take control of your own private key. With the private key in the user’s hands, it is now their responsibility to ensure that their private key is kept safe.

x stress as the responsibility of security is solely on the userx security of private keys might actually be weaker than that of an exchange+ access to private keys

In my opinion, hardware wallets are the best option for any serious crypto user. These wallets securely store the private key within a device that makes it impossible for any hacker to retrieve it. The private key is known to the user, but in the format of seed words that would be kept separately from the device. Even if a computer is absolutely riddled with malware and all sorts of baddies, a hardware wallet will allow transactions to be executed on the device without exposing the private key.

x still vulnerable to phishing attacks+ transaction signature takes place offline on the hardware wallet, before being broadcast online, so your private keys are not exposed to the web.+ access to private keys via seed words that act as a wallet backup, which means you can restore access to your tokens even when you purchase a new hardware wallet.

Easy, by using the TenX Card , you can spend cryptocurrencies in any retail shop in the world that accepts Mastercard or Visa. You can also withdraw fiat directly from ATMs with the TenX card.

​Conclusion

Any serious crypto user should use a hardware wallet such as the Ledger Nano S (our personal favourite) to store their crypto. The current limitation is that not all hardware wallets support all the 100s of cryptos that exist. For cryptos without hardware wallet support, it might be best to download the official wallet software and to secure your device, or to set up 2FA on an exchange which is able to store it. 2FA with Google Authenticator or Authy; do not use SMS.